[B]EUR/USD[/B] - ..... Euro pares intra-day gain after jumping to session high of 1.1388/89 shortly after European open, the break of yesterday's 1.1359 top bodes well for further gain later in the day once offers at 1.1390/00 are absorbed and fairly large stops are reported above 1.1450.

Bids have been raised to 1.1360-40 area with some stops below 1.1330.

A piece of euro-supportive news, Reuters reported French consumer confidence rose to its highest level in nearly 3 years in February, INSEE statistics agency said on Wednesday.

The index rose to 92 from 90 in January, beating analyst forecasts of 91 and reaching its highest level since May 2012. It was still well below its long-term average of 100. The index, which is not closely correlated to consumer spending trends, hit an all-time low in May and June 2013 of 79. The highest level since the survey was conducted on a monthly basis was 125 in Jan 2001.

Early this morning Euro maintains a firm undertone in subdued Asian trading after Tuesday's intra-day wild swings. The single currency was on the defensive in European morning as market awaited European Commission's to Greece's submission of its reforms proposal. Price fell from intra-day 1.1343 high to 1.1296 in European morning and despite a knee-jerk reaction after the EC accepted Greece's reforms plan, euro spiked to session lows of 1.1288 when Fed chief testimony was released but price quickly rallied on short-covering to day's high of 1.1359 before chopping inside a 1.1302-48 range in NY afternoon.

Euro is expected to gain respite as price has managed to shrug off bearish fundamentals, suggesting the 3-week long sideways range of 1.1534-1.1270 would continue in the coming days and upside risk has increased for further upside gain on more short-covering.

Headline euro zone inflation has plunged to -0.6%, well under the ECB's target. A majority of forecasters -- 63 of 85 -- said it won't rebound by much even if global energy prices, which have dragged it down recently, start to rise.

The ECB's bond purchase programme, which includes sovereign debt, will run from March until September 2016 or until inflation shows signs of picking up pace.

The ECB is expected to expand its balance sheet by about 1.1 tln euros by the end of next year, matching its level of early 2012, when the euro zone debt crisis raged.

35 of 81 economists expect the ECB to close out its QE programme by September 2016, on its intended schedule. Forty said the central bank will need to extend it beyond that date, while the remaining 6 said the ECB will conclude bond purchases before then.

But economists are not convinced the programme will lead to a revival in lending to the real economy and fuel demand. The liquidity flush by the ECB back in 2012 did not materially improve loans to the private sector at that time either.

[B]EUR/USD[/B] - ..... Euro opened lower in NZ on Monday to 1.1167, then 1.1160 ahead of Asian open.

Reuters reported Greece's leftist PM Alexis Tsipras accused Spain n Portugal on Saturday of leading a conservative conspiracy to topple his anti-austerity goverment, saying they feared their own radical forces before elections this year.

In a speech to his Syriza party, Tsipras accused them of taking a hard line in negotiations which led to the euro zone extending the bailout programme last week for 4 months.

"We found opposing us an axis of powers ... led by the governments of Spain n Portugal which for obvious political reasons attempted to lead the entire negotiations to the brink," said Tsipras, who won an election on January 25.

"Their plan was and is to wear down, topple or bring our goverment to unconditional surrender before our work begins to bear fruit and before the Greek example affects other countries," he said, adding: "And mainly before the elections in Spain."Tsipras has portrayed the Eurogroup deal as a victory for Greece, even though it meant extending the bailout programme he had promised voters to scrap. He noted German lawmakers from Chancellor Angela Merkel's conservatives had attacked the Greek leadership when they approved the extension on Fri.

"We have all watched the strong opposition within Angela Merkel's party which shows that unacceptable concessions have been made to Greece," he said.So far he has public backing. A poll conducted by the University of Macedonia for SKAI TV showed 56 percent of Greeks believed the extension had been a success, compared with 24 percent who said it represented a failure.

Ireland's FinMin has said Athens must negotiate a 3rd bailout when the extension expires in Jun - something Tsipras denied on Friday.

FinMin Yanis Varoufakis called into question a major debt repayment Greece must make to the ECB this summer, after acknowledging Athens faces problems in meeting its obligations to international creditors.

[B]EUR/USD[/B] - 1.1208... The single currency found renewed buying at 1.1166 at European open n rose to 1.1213 in European morning, supported by the release of some upbeat manufacturing PMIs from the Eurozone together with cross-buying of euro vs sterling.

Bids are now seen at 1.1970/80 n more below at 1.1950/60 with stops building up below there whilst initial offers are noted at 1.1240/50, suggesting further choppy trading is envisaged ahead of NY open.

This morning the single currency met renewed selling at 1.1245 on Friday due to dollar's broad-based strength on upbeat U.S. data n Fed officials' hawkish remarks. Euro further extended weakness to 1.1160 in Asian morning before recovering. Offers was now tipped at 1.1185-90 and more at 1.1200. On the downside, bids was located at 1.1160-50 with some stops seen below 1.1150.

Market players is focusing on the the European Central Bank (ECB) meeting on Thursday. Investors are keenly waiting for further details on its 1 trillion euro ($1.1 trillion) government bond-buying programme, which begins this month.

Economists expect the ECB will also decide whether to accept Greek government bonds as collateral for its direct funding, which the bank stopped doing at the start of February.

[B]EUR/USD [/B]- ...... Despite hitting an intra-day high of 1.1212 after better-than-expected German retails sales at European open, euro came under pressure as st specs sold the single currency broadly as stops below yesterday's 1.1160 are not in focus.

There is market chatter of large stops building below January's 11-year bottom at 1.1098, so market is keen to test euro's downside. Having said that,several layers of bids are reported at 1.1150-30 area and more above 1.1100, so aforesaid January's trough may not be easily reached in the absence of bearish news.

On the upside, offers are tipped at 1.1190/00 and more above with stops above 1.1245.

This morning although the single currency staged a brief rebound to 1.1245 on Monday, renewed selling there due to dollar's broad-based strength knocked the pair lower. On the data front, Germany will release its retail sales data at 07:00GMT whilst eurozone will release its producer prices at 10:00GMT. ECB policymakers meet in Cyprus on Wednesday and Thursday. The ECB is expected to lay out more details of the program at a news conference on Thursday.

Reuters reported keen to keep a low profile over the Greek crisis, the ECB will focus on improved growth prospects when it meets today and unveil some but not all the details of its 1 tln euros-plus bond buying plan.

Meeting in Cyprus, the ECB will keep rates on hold, likely lift growth forecasts to reflect a string of positive data surprises but cut inflation projections as it incorporates the full effect of a dramatic oil price fall, backing its case to buy 60 bln euros worth of bonds a month from March to spur inflation.

Markets will be looking for how quantitative easing will work, when the buying will start, whether it applies to paper with negative yields and how the purchases will be distributed along the yield curve.Anticipation of the QE programme has driven euro zone borrowing costs down to the point where Spain can borrow for 10 years at just 1.3% and investors actually pay for the privilege of lending to Germany for 5 years. Yields in Italy, Spain and Portugal dropped to record lows this week.

[B]EUR/USD[/B] - ...... Despite euro's brief rebound from Monday's fresh 11-1/2 year low at 1.0823 to 1.0907 (Europe) on short-covering, the single currency met renewed selling pressure there and fell again in Asia today. Stops below 1.0823 are now in focus but some bids are located at 1.0800. On the upside, offers are tipped at 1.0850-60, 1.0880 and more at 1.0900.

Greece will continue to be in the spotlight this week. Reuters reported warning Greece it had "no time to lose", EZ ministers agreed technical talks between finance experts fm Athens n its international creditors would start on Wed with the aim of unlocking further funding.

The ECB's Governing Council is set to hold a teleconference on Thursday to discuss extending that emergency liquidity assistance (ELA), a person familiar with the matter said. An opinion poll on Monday showed a large majority of Greeks want Athens to compromise to avoid having to leave the euro.

[B]EUR/USD[/B] - ..... Euro fell in NY session on Tuesday and hit a fresh near 12-year low of 1.0669 in Australia earlier this morning as lingering market worry on Greece continued to pressure the single currency.

Reuters reported a Greek exit from the euro zone would set a dangerous precedent by showing that the single currency is not irreversible and should be avoided, Italian Economy Minister Pier Carlo Padoan said on Tuesday.

"Today we are facing a major risk of considering the possibility of (a country) not being a member of the monetary union anymore," he told students at a university, adding, "You know what I have in mind".He said that if the exit option is there for one member, "that option can be extended to other members. Most of all, the monetary union is not irreversible," he said, speaking in English.Padoan added: "I personally think Greece will not exit the euro. I will do all I can to keep Greece inside the European monetary union, however, I cannot predict the future".

Yesterday on the European morning, Euro pares intra-day loss after tanking from 1.0856 (Aust.) to a 12-year low of 1.0785 in Asian morning after tripping some stops below 1.0800. However, the release of stronger-than-expected French industrial production (Jan reading came in at 0.4% vs forecast of -0.3%) prompted short-covering, the pair briefly rebounded to 1.0824 but only to retreat soon after the bounce, suggesting traders were still keen to sell euro on intra-day recovery as market woe on Greek debt continues to weigh on the euro.

[B]EUR/USD [/B]- ..... Greece continues to take centre stage today. Reuters reported European Commission President Jean-Claude Juncker said on Friday as he met the Greek PM in Brussels that progress on a deal between Athens and its creditors had been insufficient and said he would make "proposals" to overcome the differences.

Noting that any deal depended on other euro zone governments, Juncker said: "I'm not satisfied with the developments in recent weeks. I don't think we have made sufficient progress." Addressing reporters with premier Alexis Tsipras, who said he was "optimistic", Juncker added: "I'm totally excluding a failure. I don't want a failure. I would like Europeans to go together. This is not a time for division. This is the time for coming together."

With increasing talk among other euro zone states that Greece, under Tsipras' radical left government, could have to quit the currency bloc, the prime minister stressed he wanted a common solution. Juncker, the EU's chief executive, said Tsipras was "on a pro-European track".

[B]EUR/USD[/B] - ...... The single currency met renewed selling interest at 1.0614 in Asia and then penetrated Tue's NY sup at 1.0584 ahead of European open on renewed dlr's broad-based strength, price dropped marginally to 1.0580 before recovering in part due to cross-buying in euro.

Euro zone's trade balance for Febuary will release at 10:00GMT. Market's forecast is for the trade surplus to narrow to 15.0 bln euros from 24.3 bln euros in the preceding month.

Looks like the single currency to remain under pressure ahead of NY open due to expectation of 'hawkish' FOMC monetary policy statements later today and selling on recovery is recommended. At present, fresh offers are noted at 1.0600-10 and then 1.0615/20 with stops emerging above 1.0650, whilst bids from various accounts are placed at 1.0560-50 and then 1.0535/30 with stops located just below 1.0530.

News from Reuters quoting from gov't spokesman, 'Greece aims to clarify Feb, 20 Eurogroup accord, will seek provision of liquidity at EU summit this week; Greek PM Tsipras will not seek funding fm Russia during meeting with Putin in Moscow.'

[B]EUR/USD[/B] - ....... Reuters reported Greece faces a liquidity problem and needs the cooperation of its European lenders to deal with a possible cash crunch, its deputy prime minister said.

Greece has been kept afloat since 2010 by EU/IMF bailouts totaling 240 bln euros and risks running out of cash in weeks amid a widening rift with its creditors.

"We haven't received any (bailout) tranches since August 2014 but we have been meeting all of our obligations," Deputy PM Yannis Dragasakis told Greek Alpha TV. "This has its limits."

Asked whether Greece risked running out of cash if it does not reach a deal with its lenders, Dragasakis said:

"Of course we have a liquidity problem, for the reason I mentioned. We have obligations which, in order for us to meet, we need the good cooperation of the European institutions."

Dragasakis ruled out early elections or a referendum should Athens's negotiations with the euro zone fail. "There are some things that we need to keep in the back of our minds ... (however) neither elections nor a referendum are on the table at the moment," he said, without elaborating on what the referendum might be on.

Earlier news on Reuters quoting comments from Greek deputy PM who says :-Greece has a liquidity problem, we need good cooperation with EU partners to meet our obligations.-grexit does not concern us, it is not an option for our government.-a referendum is not on the table at the moment.

Yesterday European Council President Donald Tusk confirmed he would hold talks with the leaders of France, Germany and Greece and the heads of the European Central Bank and the euro group on Thursday to discuss the Greek debt crisis.President Francois Hollande, Chancellor Angela Merkel and Prime Minister Alexis Tsipras as well as the ECB's Mario Draghi will participate in the meeting, while Jeroen Dijsselbloem will also be present, a spokesman for Tusk said.The talks will take place on the sidelines of an EU summit in Brussels.

At the moment, stops locating just above yesterday's high of 1.0972 are now in focus, however, more selling interest from various accounts are placed at 1.0990-00, 1.0915/20 and then 1.0930-40. On the downside, bids are various accounts are building up from 1.0930 down to 1.0900 with mixture of bids and stops emerging below 1.0880.

Earlier Reuters reported Greece will present its proposed package of reforms to its euro zone partners by next Mon in hopes they will release much needed cash, its gov’t spokesman said on Tuesday "It will be done at the latest by Mon," gov’t spokesman told Mega TV.

Greek PM Alexis Tsipras met with German Chancellor Angela Merkel in Berlin on Monday but it was unclear if they had narrowed differences on economic reforms Athens must implement to win urgently to get fresh aid fm its creditors.

Sakellaridis said the package of reforms Athens will propose will not contain recessionary measures but structural changes. He said Tsipras and Merkel on Mon discussed the outline of the reforms but did not go into depth. "I believe points of convergence were found," Sakellaridis said.

[B]EUR/USD[/B] - ...... Despite release of a slew of better-than-expected mfg PMIs from euro zone n its member countries, active cross-selling in euro kept price under pressure in European morning n price extended fall from Asian high of 1.0792 to 1.0742 b4 moving sideways.

Offers are noted at 1.0760-70 n around 1.0780 with mixture of offers n stops emerging above 1.0800. On the downside, bids are placed at 1.0730/20 n around 1.0715 with stops located just below 1.0700.

Research group Markit said on Wed that French manufacturing PMI rose to a seasonally adjusted 48.8 in Mar, from 48.2 in the preceding month, German manufacturing PMI rose to a seasonally adjusted 52.8, from 52.4 in the preceding month, and euro zone's manufacturing PMI rose to 52.2, from 51.9 in the preceding month.

[B]EUR/USD [/B]- ...... Euro gains respite temporary respite in Asia after clocking up 4 consecutive days of losses. Although euro tumbled on Thur below last week's low at 1.0713 to a fresh 2-1/2 week trough at 1.0637 in NY due to renewed broad-based strength in the greenback n comments from IMF head Christine Lagarde (see prev. update), short-covering lifted price near NY close n price recovered to 1.0684 in Asian morning on Fri.

Euro's weakness since the beginning of this week suggests selling the single currency on intra-day recovery is favoured today. At the moment, offers are tipped at 1.0685/90, 1.0700-10 n then 1.0735/40 with stops building above 1.0750, whilst bids are noted at 1.0650-40 with stops below 1.0600.

It was reported Greece could suffer if it were forced to default on its payments n exit the euro zone, while the currency bloc is better able to weather such a shock than it was 4 years ago, the head of the IMF said on Thursday. "I think it would be a terrible situation for the Greek people," IMF MD Christine Lagarde said on CNBC in response to a question about a potential Greek exit from the currency bloc. She added that the euro zone is now in a less vulnerable position due to its banking union n strengthened fiscal union.

[B]EUR/USD [/B]- ...... The single currency went trough a 'mini' roller-coaster session in European morning. Although euro rose marginally above Asian high of 1.0787 to 1.0791 and then tanked to a fresh session low at 1.0738 on news from Kathimerini newspaper saying that overseas bank subsidiaries have been told to exit Greek debt exposure, renewed cross-buying in euro lifted price above 1.0800 level to 1.0804.

At present, stops located just above yterday's high of 1.0818 are in focus, however, offers from various accounts are placed at 1.0830-40 and around 1.0850. On the downside, bids are noted at 1.0770-60 and then 1.0740-30 with mixture of bids and stops at 1.0720-10.

[B]EUR/USD[/B] - ...... Although euro retreated briefly from 1.0748 to 1.0727 after comments from ECB's Executive Broad Member Benoit Coeure (see our prev. MMN), price rebounded at shortly after European open n climbed to a fresh session high of 1.0757.

At the moment, offers are noted at 1.0760-70 with stops reported above 1.0785. On the downside, bids are placed at 1.0730/25, 1.0720-10 n more below with fairly large stops touted below yesterday's low at 1.0660. No major EZ data are due out today except for a slew of eco. releases from Italy.

This morning although euro rallied from 1.0660 to 1.0782 after EZ FinMins removed deadline of Greek fiscal reforms, euro retreated in NY afternoon after buying evaporated. Despite trading narrowly in Australia, traders sold euro on the New York Times report of the ECB is demanding a 50% cut in the value of collateral Greek banks have deposited with the central bank for loan. Euro briefly hit intra-day low of 1.0717 before stabilising.

Looks like range trading is in store until European open as market awaits reaction of the NYT report fm European traders. No major EZ data are due out today except for a slew of eco. releases from Italy.

[B]EUR/USD[/B] - ...... Although Gfk said that its index of Germany's consumer climate rose to the highest in 13.5 years at 10.1 in May, euro showed muted reaction to the data as it missed the median forecast of economist at 10.2. Earlier, cross-selling in euro pressured the EUR/USD pair below 1.0700 level to 1.0691 in Asia before staging a recovery to 1.0718.

Investors are now awaiting the release of Markit PMIs for France, Germany and euro zone for more clues on the economic condition in euro zone area.

At the moment, offers are tipped at 1.0720-30, 1.0740/45 and then around 1.0750 with stops located just above 1.0760. On the downside, bids are touted at 1.0685/80, 1.0670-60 and then 1.0640/30 with stops emerging just below 1.0620.

In European morning, INSEE showed the French consumer confidence rose in April, French consumer confidence rose to 94 from 93 in the preceding month, in line with market's expectation.

At previously mentioned, bids are noted at 1.0850/45 and then 1.0820-10 with mixture of bids and stops located at 1.0800-1.0700. On the upside, offers are reported at 1.0920-30 with some stops building above 1.0960.

ECB's Noyer, on French Radio talked it's possible for French 2016 growth to start creating jobs, possible for French growth to be above 1.5% next year; and substantial reform efforts still required for French job creation, a reshuffle of Greek negotiating team can help negotiations & reshuffle does not however change substance, which is about the reforms needed.

[B]EUR/USD - 1.1191[/B].. A piece of mildly euro-supportive news which came out during NZ morning, Reuters reported negotiations between Greece and its international lenders over reforms to unlock remaining bail out aid have made headway and an agreement could be closer this month, a gov't official said on Sunday.

"There were very important steps made at the Brussels Group (talks) which bring an agreement nearer," the official said, declining to be named. "All sides aim for an agreement at a Brussels Group level within May."

The talks between technical teams from Athens and EU/IMF/ECB lenders are expected to resume on Monday, the official said after the country's chief negotiators met with PM Alexis Tsipras.

A EZ official also said there was convergence on some issues but sticking points remained n that talks were expected to continue through Wednesday.Athens hopes that a successful conclusion of the negotiations at the so-called Brussels Group could lead to recognition of the progress by the Eurogroup of EZ finance ministers n bring some liquidity relief.

[B]EUR/USD [/B]- ....... ECB's Noyer adds 'there is a risk that Greek banks may run out of collateral to obtain emergency ECB liquidity if the situation continues.' ....more on this, read earlier report.

Looks like consolidation with downside bias wud be seen ahead of the release of euro zone's Producer Price reports at 09:00GMT n selling the euro on intra-day recovery is recommended.

Offers from various accounts are noted at 1.1115/20 and more at 1.1130-40 with a mixture of offers n stops located at 1.1150-60. On the downside, bids are placed at 1.1060-50 and then 1.1045/40 with stops emerging just below 1.1020.